Big sized players on the European Union's financial advisory market

AuthorNicolae, C. - Danu, A.
PositionPhD. Student, Dept. of Marketing, Tourism and International Relations, Transilvania University of Brasov - PhD. Student, Lucian Blaga University of Sibiu
Pages133-138
Bulletin of the Transilvania University of Braşov • Vol. 6 (55) No. 1 - 2013
Series V: Economic Sciences
BIG SIZED PLAYERS ON
THE EUROPEAN UNION’S
FINANCIAL ADVISORY MARKET
C. M. NICOLAE
1 A. DANU2
Abstract: The paper presents the activity and the objectives of “The Big
Four” Group of Financia l Advisory Firms. The “Big Four” are the four
largest internationa l professional services networks in a ccountancy and
professional services, offering audit, a ssurance, tax, consulting, advisory,
actua rial, corpora te finance and legal services. They handle the vast majority
of audits for publicly tra ded companies as well a s many private companies,
creating an oligopoly in auditing large companies. It is reported tha t the Big
Four audit all bu t one of the companies tha t constitute the FTSE 10 0, and
240 of the companies in the FTSE 250, a n index of the lea ding mid-cap
listing companies.
Key words: financia l a dvisory services, mar ket, financial expert, player
market.
1 PhD. Student, Dept. of Marketing, Tourism and International Relations, Transilvania University of Braşov.
2 PhD. Student, Lucian Blaga University of Sibiu.
1. Introduction
Financial advisors are qualified personal
finance experts who will help you decide
which products in the market are suited to
your needs. Their role is to determine your
particular investment needs on the basis of
your financial situation, lifestyle and goals,
and then recommend suitable products.
These are often investment funds but may
also include insurance policies, pension
plans or mortgages that offer the best
solution for you.
In some countries, most financial
advisors work for financial institutions
such as banks or insurance companies; in
other countries, financial advisors who
work for their clients independently, rather
than on behalf of a financial institution, are
the norm. In this context, the term IFA
(independent financial advisor) is often
used. Especially in the UK, the term has a
specific meaning and reflects the local
regulations there. Fund management
companies can also serve an advisory role
by providing information about the
investor types for which its respective
funds are suited.
Advisors employed by banks and other
institutions come under the supervision of
local financial supervisory authorities.
Independent financial advisors are
generally supervised by the organization
responsible for regulating the financial
services industry in their home country.
Advisors in Europe are also subject to the
EU-wide Markets in Financial Instruments
Directive (MiFID), which sets out very
specifically the duties of advisors to
provide advice suitable for their clients’
needs. The MIFID guidelines also require

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